Rajasthan RERA Awards ₹1 Lakh Compensation After Promoter Retains Booking Amount Following Cancellation of Allotment
Case: Seema Devi & Ors. v. Ravi Surya Affordable Homes Pvt. Ltd.
Complaint No.: RAJ-RERA-C-O-2024-7211
Forum: Rajasthan Real Estate Regulatory Authority (Rajasthan RERA)
The matter concerned cancellation of allotment and retention of the booking amount by the promoter, Ravi Surya Affordable Homes Pvt. Ltd. The Rajasthan RERA considered whether the homebuyers were entitled to compensation where the promoter had retained the booking amount for a prolonged period following cancellation.
Background
Seema Devi and the other complainants had booked units in a project of Ravi Surya Affordable Homes. The dispute arose after the allotment was cancelled and the promoter retained the amount deposited by the complainants.
The Rajasthan RERA considered the nature and extent of the financial loss suffered by the complainants, particularly because the amount retained by the promoter consisted only of the booking amount, rather than a substantial part of the sale consideration.
Finding of Rajasthan RERA
The Authority held that retention of the booking amount for such a period caused tangible financial loss to the complainants and resulted in an element of undue enrichment to the promoter.
The Authority observed that, had the promoter borrowed an equivalent amount from the market, it would ordinarily have incurred an interest liability. Therefore, although the case could not be treated in the same manner as a normal refund case involving substantial payments towards the sale consideration, the complainants were nevertheless entitled to reasonable compensation for the financial loss suffered.
Compensation awarded
The Authority awarded a total of ₹1 lakh to the complainants, comprising:
₹80,000 towards financial loss; and
₹20,000 towards physical and mental agony and litigation expenses.
Ravi Surya Affordable Homes was directed to pay the amount within 45 days. In case of default, the amount would carry interest at 6% per annum from 16 September 2026 until payment.
Important RERA proposition
Even where the promoter has retained only the booking amount, prolonged retention following cancellation of allotment may justify compensation for the financial loss caused to the allottee; the quantum of compensation may, however, be assessed differently from cases involving refund of substantial sale consideration.
Significance
The case is useful for the proposition that compensation under RERA is not necessarily confined to cases where a substantial portion of the apartment's consideration has been paid. Where the promoter retains a booking amount for an extended period, the Authority may consider the resulting financial loss and other consequences while determining appropriate compensation.
